PALADIN ENERGY LTD (PDN)



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General Information
Company Name: Paladin Energy Ltd
Stock Code: PDN
Website: www.paladinenergy.com.au
GICS Sub-Industry: Oil & Gas Drilling
Market Cap ($M): 787
Equiv. Shares (M): 837

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.940 $ 0.905 $ 0.945 $ 0.900 $ 0.900 7,791,014 $ 0.040  4.444 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 16th May 2013
12 Month Target Price (average): $1.217
Brokers Surveyed: 6

Company Overview

Business Description:
Paladin Energy Limited (PDN) is a uranium production and exploration company with projects currently in Australia, Canada, and Africa. Paladin’s total Indicated and Measured Mineral Resource inventory includes 181,514t U3O8.

Strategy Analysis:
PDN aims to establish a global footprint underpinned by significant uranium production to meet the growing demand for nuclear fuel. It seeks progressive development of its uranium resources, complemented by strategic merger and acquisition activity, supported by opportunities arising from its marketing entity, Paladin Nuclear. Paladin Energy reported a net loss of US$193.5m for the half-year ended 31 December 2012. Revenues from ordinary activities were US$195.5m, up 13% from the same period last year. Basic and Diluted EPS was (23.1) US cents compared to (14.9) US cents last year. The net operating cash inflow was US$49.3m compared to an outflow of US$78.0m in the pcp. No dividend was declared. The company also reported record half year combined production of 4.120Mlb U3O8, an increase of 34% over the December 2011 half year achieving 97% of nameplate production for the half year. FY2013 production guidance of 8.0-8.5Mlb U3O8 remains on target.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2014  F 55.8 6.7 -- 14.1 -- 0.0 --
2013  F -99.9 -11.9 -- -- -- 0.0 --
2012  A -169.6 -20.7 -- 0.0 0.0 0.0 --
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
Horizon Oil (HZN) $443 M -0.7700 0.1515 4.5658 59.0909 51.3158 9.2199 0.0000 0.0000 0.0000
Paladin Energy (PDN) $753 M -- -- -- -- -- 13.5135 0.0000 0.0000 0.0000

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
PDN 1.25 -- 0.70 -- 2.15
Market 0.83 14.9 1.29 1.81 1.77
Sector 1.37 15.8 0.79 2.17 5.41

Directors
Name Position Start Date
Mr John Borshoff Chief Executive Officer,Managing Director 24 September 1993
Mr Rick Wayne Crabb Non-Executive Chairman 08 February 1994
Mr Sean Llewelyn Non-Executive Director 12 April 2005
Mr Donald Shumka Non-Executive Director 09 July 2007
Mr Peter Mark Donkin Non-Executive Director 01 July 2010
Mr Philip Baily Non-Executive Director 01 October 2010

Management
Name Position
Alan Rule Chief Financial Officer
Garry Korte Chief Financial Officer
Gillian Swaby Company Secretary
Dustin Garrow Executive General Manager - Marketing
Mark Chalmers Executive General Manager - Production

Substantial Shareholders
Holding Name
52,097,937 (6.70%) Newmont Mining Corporation
63,119,387 (7.55%) L1 Capital Pty Limited

Calendar of Events
Date Event
16 April 2014 Report (Quarterly)
13 February 2014 Report (Interim)
16 January 2014 Report (Quarterly)
11 November 2013 Report (Quarterly)
28 October 2013 Report (Annual)
15 October 2013 Report (Quarterly)
29 August 2013 Report (Annual)
29 August 2013 Report (Prelim)
12 July 2013 Report (Quarterly)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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